On September 10, 2021, Guangdong Huate Gas Co., Ltd. (688268) announced: Zhongyang Investment's Zhao Yang and Li Liyuan conducted a research on our company on September 9, 2021. The research was hosted by the secretary of the board of directors, Wan Lingzhi, and assisted by securities assistant Sun Qiong.
The main content of this research is:1. Introduction of the company by Mr. Wan.
2. Q&A Session
1. For overseas downstream customers, does the company validate each one separately? Answer: Yes, the company needs to certify each new manufacturer and each new product.
2. What is the production capacity and output value of the company's Germanium Tetrahydride product? Answer: The designed production capacity of the product is 10 tons, and at the current market price, the output value is approximately 200 million when fully operational.
3. Does the company bear the cost of validating its products? Answer: Generally, the company bears the cost, but if the validation is successful, the customer will also bear a part of it.
4. What is the company's competitiveness in the domestic photomask gas market? Answer: The company's photomask gas sales in the first half of the year increased by approximately 70% year-on-year. The company has a certain level of competitiveness domestically, as it is the only gas company in China certified by ASML, one of only four in the world. In addition, in 2021, the company's photomask gas also passed the certification of Japan's Gigaphoton.
5. Is the company's future development direction mainly focused on mergers and acquisitions? Answer: The company will always prioritize independent development, supplemented by mergers and acquisitions.
6. How many research and development centers does the company have? Answer: The main research and development personnel are located in the headquarters in Foshan and the fundraising project site. Each production base also has its own research and development personnel, but the proportion is relatively small.
7. Has the number of research and development personnel in the company increased? Answer: As of June 30, 2021, the company has 87 research and development personnel, not much increase compared to the previous year.
8. The growth rate of the company's general industrial gases is relatively considerable. What are the reasons for this? Answer: It is due to the increasing demand in the metal fabrication industry, which drives the growth of business related to low-pressure tank-mounted gases.
9. Does the company rely on its own research and development or does it also cooperate with other companies? Answer: The company focuses on independent research and development, but also collaborates with other companies, including collaborations with universities.
10. How competitive is the company's fluorochemical products? After other manufacturers produce this product, does it have a certain impact on the company? Answer: The company has a wide range of fluorochemical products, mainly used in etching and cleaning processes. Some products have been supplied to 5nm advanced semiconductor manufacturing processes and cover 8-inch and larger semiconductor plants. Therefore, the company's fluorochemical products have a certain level of competitiveness. The company is constantly improving its accuracy to maintain the advanced nature of its products.
Huate Gas Co., Ltd.'s main business: with the approved projects, it is engaged in research, production, sales, and transportation of various industrial gases, medical gases, standard gases, special gases, mixed gases, food additive gases, fire extinguishing gases, electronic gases, electronic chemicals, foaming agents. Sales: gas-related equipment and components, gas packaging materials, gas cylinders, medical instruments, fire fighting equipment and devices, machinery equipment, machinery castings, hardware building materials, metal materials, welding equipment and materials, chemical raw materials and products (excluding hazardous chemicals), plastic products, rubber products, household appliances, office supplies, daily necessities, toys, kitchen utensils. It provides technical consultation and support services, pre-sales and after-sales services; engages in gas-related application technology development, software system development, technical consultation, technical services and technology transfer, gas detection, gas cylinder inspection; engages in gas-related engineering and project construction; engages in design, research and development, manufacturing, processing, installation, maintenance, and related services of gas-related equipment and components; car rental, other machinery and equipment leasing, factory building leasing, market information consulting; import and export of goods, import and export of technology; general cargo transportation, transportation of dangerous goods [Class 2, Class 3, Class 8] (business activities can only be carried out after approval by the relevant departments in accordance with the law).
Huate Gas Co., Ltd.'s 2021 interim report shows that the company's main operating income is 647 million yuan, a year-on-year increase of 53.4%; the net profit attributable to the parent company is 65.8676 million yuan, a year-on-year increase of 53.79%; the non-net profit attributable to the parent company is 58.4819 million yuan, a year-on-year increase of 44.74%; the debt ratio is 17.29%; investment income is 4.5011 million yuan; financial expenses are 2.9757 million yuan; gross margin is 24.46%.